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Novo Nordisk (NVO) Advances While Market Declines: Some Information for Investors

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Novo Nordisk (NVO - Free Report) closed at $133.28 in the latest trading session, marking a +0.08% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.16%. On the other hand, the Dow registered a loss of 0.14%, and the technology-centric Nasdaq decreased by 0.06%.

The drugmaker's shares have seen a decrease of 6.4% over the last month, not keeping up with the Medical sector's gain of 0.37% and the S&P 500's gain of 1.96%.

Investors will be eagerly watching for the performance of Novo Nordisk in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.76, signifying a 20.63% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $9.85 billion, showing a 24.13% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.38 per share and a revenue of $42.45 billion, signifying shifts of +25.19% and +25.92%, respectively, from the last year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Novo Nordisk. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.83% lower. Novo Nordisk is currently sporting a Zacks Rank of #3 (Hold).

From a valuation perspective, Novo Nordisk is currently exchanging hands at a Forward P/E ratio of 39.42. This signifies a premium in comparison to the average Forward P/E of 15.4 for its industry.

Also, we should mention that NVO has a PEG ratio of 1.34. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Large Cap Pharmaceuticals industry stood at 1.62 at the close of the market yesterday.

The Large Cap Pharmaceuticals industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 186, placing it within the bottom 27% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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